FTCR but mismatched tax years

[canopao]

I receive income from foreign properties, which is taxed in the foreign country. However the foreign tax year is January-December. How do I calculate the FTCR amount?

Example: I have paid 12000 in the foreign country for January-December 2018. 2019 income has not yet been taxed (and won't be for several months). My thoughts are that:
1. I can claim 9000 back of the foreign tax I paid (75% of 12000, covering the period April-December 2018, 9 months).
2. I can try to estimate how much foreign tax I will be asked to pay for January-March 2019: I know the income amount, so can make a rough estimate.
3. I add the outcome of 1. and 2. above together, and claim FTCR for that for the 2018-19 UK Year.
4. For the 2019-20 year I repeat the process, adding an adjustment if my estimate in point 2. was incorrect.

Is this the way to do it?

[jerome.lane]

Did you claim £3k for Jan to March in 2018 return? Would it be worth considering the cash basis of accounting if you meet the conditions?
Otherwise, you can accrue on known 9 months and best estimate as you have suggested.
I'm aware that some just use the tax paid for the year on the basis that if movement isn't significant year on year, it saves some admin hassle and it all comes out in the wash anyway....

[plcanonica]

Would it be worth considering the cash basis of accounting if you meet the conditions?

Dear Mr Lane, Thank you for your reply. Is it possible to use the cash basis to calculate FTCR then? For example, if I paid 5k in foreign tax during the 2018-19 tax year, but those included say 3k for tax on the 2018 year's income and 2k of tax on account for the 2019 year's income, can I claim the full 5k as FTCR?

[jerome.lane]

Yes, if the £2k was paid prior to 5 April 2019 and actually due for the period. HMRC should accept this treatment provided the conditions for the cash basis are met and it is not used in an abusive way (you cannot make a payment on account, then file your UK tax return and ask for a repayment of foreign tax abroad that you know is not due).
A payment on account is not always a legal obligation to pay (only interest applies to late or understated reduced payments on account in the UK), so HMRC could challenge whether it is deductible although if there's no mischief, it is unlikely to be a problem.
You are now past the 31 December so will have an idea whether the total amount of foreign tax paid relative to Jan 2019 to March 2019 was correct so can make an informed decision at a sensible approach and submit an accurate return.